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Neha bought a cooler for ₹ 3,300 including a tax of 10%. Then the price of the cooler before tax is :

  • A.₹ 2,700
  • B.₹ 2,970
  • C.₹ 3,000
  • D.₹ 3,030

Answer: C

The price before tax is ₹ 3,000.

The price including tax is 110% of the price before tax. Let the price before tax be \(P\):

\[ \begin{aligned} 1.10P &= 3300 \\ P &= \frac{3300}{1.10} = 3000 \end{aligned} \]

Check: 10% of 3,000 is 300, and 3,000 + 300 = 3,300. The trap is ₹ 2,970, which is 3,300 minus 10% of 3,300: the tax is 10% of the pre-tax price, not of the total. ₹ 3,030 and ₹ 2,700 come from adding or subtracting the tax amount the wrong way.

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